Choose the Right Crowd Funding Platform
Crowd funding is a concept where the online network is used to collect money from a large group of individuals for various purposes. These could range from establishing the business to personal issues such as medical help. The concept could also be viewed as a sale of equity to the potential investors available online. In the age of cut throat competition, crowd funding is not an exception. Crowd Funding Platform has grown to such an extent that high quality websites provide the service and are competing with each other in promoting new ideas. The amount of platforms available for the user hasnearly risen to 500. The websites each provide a unique feature that makes it stand apart from others. Stream lined platforms are also available. One example for it would be Pictactic, which is specialized in organizing events. Various other type of platform is also available for every specific genre. This helps in establishing a clear relationship between the investors and the fund seekers.
Crowd Funding Platform works based on certain models. While certain platforms engage in only fundraising, others involve in getting equity of the business in which they invest. The concept in which the money is raised or used depends upon the discretion of the platform itself. Certain crowd funding platforms such as KickStarter purely base themselves on all or nothing concept. It is a concept where when the fund raising period is completed, the goal is checked whether it is completed or not. If yes the funds are collected else it is not. Other platforms such as Crowd Fund Edu which is used for education purpose follows the policy of keep it all. The money collected is given to the party irrespective any factor and it is up to the recipient to decide the possibility of returning of funds or not. Bounty based models are those where the funds collected would be given to those parties which complete the project first. BountySource is crowd Funding platform which specializes in this area.
The platforms are also categorized based upon the method the investors get their fun back. The model is primarily divided in to equity, property, loan and others. The equity type ensures that the investors would get equity on the small business that they ventured into. CrowdCube is one such website which involves issuing funds based on equity and rewards for the investors. Property based websites makes sure that the investors get the money from the property belonging to the individual who initiated the fundraising. Loan based crowd funding platform are those which ensures that the fund seekers re
pay the money to the investors in due time. Funding circle is one of the website which specializes in this front.
Crowd funding can also be used for philanthropic or civic purposes as well. Many websites are specialized in such streams. They invoke investors who have an altruistic touch to their characters and obtain funds from them which could be used for welfare of society. Crowd funding is one of the best options available to raise funds in world today.